Commercial Operations: Communication: Factors That Affect Communication (Copy)
2.6 Communication
2.6.3 Factors That Affect Communication
Introduction
- In business, communication is not just about what is said, but also how, when, and through which method the message is delivered.
- The choice of communication method depends on several factors such as urgency, cost, security, distance, availability of networks, and the importance of the message.
- Selecting the wrong method may lead to misunderstandings, delays, or even financial losses.
1. Urgency
Explanation
- If a message must be delivered quickly, methods such as telephone, web chat, or videoconferencing are more appropriate than letters or posters.
Examples
- A factory machine breaks down: the manager calls the supplier immediately instead of sending a letter.
- A last-minute price change in a quotation is best communicated via email or phone call rather than traditional mail.
Impact
- High urgency requires fast, direct methods (telephone, instant messaging).
- Low urgency allows formal methods (letters, written contracts).
2. Cost
Explanation
- Businesses must consider the expense of the communication method in relation to its benefits.
- Some methods, like face-to-face meetings, are effective but costly (travel expenses), while email and social media are much cheaper.
Examples
- A small retailer uses WhatsApp to contact suppliers instead of international calls to save costs.
- Large corporations may afford videoconferences for important negotiations.
Impact
- High-cost methods should be reserved for high-value communication.
- Low-cost methods are suitable for routine communication.
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3. Security
Explanation
- Some messages contain confidential or sensitive information (e.g., financial data, trade secrets).
- In such cases, methods that provide encryption and privacy are essential.
Examples
- Banks use secure online portals for sharing financial documents.
- A business sending employee salaries uses encrypted email instead of social media.
Impact
- High-security communication (encrypted email, secure servers, digital signatures) ensures trust.
- Low-security methods (posters, open social media) are only suitable for public information.
4. Distance
Explanation
- The physical distance between sender and receiver influences the choice of method.
Examples
- For local communication, face-to-face meetings or phone calls may be sufficient.
- For international communication, videoconferencing, email, or letters of credit are more practical.
Impact
- Short distances → more personal methods (face-to-face).
- Long distances → electronic methods (videoconferencing, email, web chat).
Written And Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
5. Availability Of Networks
Explanation
- Communication depends on whether there is access to internet, telephone lines, or postal services.
- In some areas, poor infrastructure limits options.
Examples
- A rural supplier without internet access may rely on telephone or letters.
- An international company in urban areas will use email, cloud storage, and video calls due to reliable networks.
Impact
- Strong network availability → preference for digital methods.
- Weak networks → reliance on traditional methods.
6. Importance Of The Message
Explanation
- The seriousness or sensitivity of the message affects the method chosen.
Examples
- A company announcing major policy changes may call a face-to-face meeting instead of sending an email.
- A reminder for an overdue payment can be sent by email or statement of account.
Impact
- Highly important messages → more formal methods (face-to-face, official letters).
- Routine or minor messages → informal methods (chat, posters, quick calls).
Written And Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Balanced Evaluation
- Urgent messages favour speed (telephone, chat).
- Expensive messages require balancing cost and benefit (videoconferencing vs travel).
- Confidential messages demand secure channels (encrypted emails, digital signatures).
- Long-distance messages benefit from electronic tools (Zoom, email).
- Network-dependent areas may limit choice (urban vs rural).
- Important decisions often require formal, recorded communication for proof.
Case Studies
Case Study 1: Supplier Urgency
- A retailer urgently needs goods before Eid.
- Contacts wholesaler via telephone for immediate confirmation, then follows up with written email for record.
Case Study 2: International Negotiation
- A Pakistani exporter negotiates with a UK buyer.
- Uses videoconferencing for discussion, followed by a formal letter of credit for secure payment.
Case Study 3: Local Employee Communication
- A store manager announces weekly shifts through WhatsApp due to low urgency and low cost.
- For termination notices, however, written letters are used for legal proof.
Written And Compiled By Sir Hunain Zia, World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change O Level And IGCSE Commerce Full Scale Course
Conclusion
- The choice of communication method depends on urgency, cost, security, distance, network availability, and message importance.
- No single method suits all situations; businesses must evaluate context before selecting.
- Effective communication balances speed, accuracy, cost, and professionalism to achieve business goals.